2022 (7) TMI 1108 - AT - Income Tax

Appealable orders before Commissioner (Appeals) u/s 246A - Levy of late Fee u/s 234E - intimation under section 200A - HELD THAT - In this case the Appellant assessee had filed an appeal before the CIT(A) against the Intimation u/s 200A of the Act. The said fact is clearly mentioned in the Form-35, Column Number 2a. Therefore, as per section 246A of the Act, the assessee has a right to file an appeal before the ld.CIT(A) against the intimation u/s 200A of the Act. Therefore, we are of the opinion that the CIT(A) has erred in holding that the appeal is not maintainable. Hence, the issue is set aside to the file of the CIT(A) to be decided a fresh after giving opportunity to the assessee. Accordingly, grounds raised by the assessee are allowed for statistical purpose.

Summary

Issues involved: Appeal against levy of fees under section 234E of the Income Tax Act, 1961 for the assessment year 2018-19; Maintainability of appeal against levy of fees under section 234E; Interpretation of Section 246A regarding appealable orders before the Commissioner (Appeals).

Analysis:

1. Appeal against levy of fees under section 234E: The case involved three appeals by the same Assessee challenging the orders of the Commissioner of Income Tax (Appeals) regarding the levy of fees under section 234E of the Income Tax Act, 1961 for the assessment year 2018-19. The grounds of appeal primarily focused on contesting the confirmation of the fees and the maintainability of the appeal. The issue revolved around the late filing of Form 24Q for the quarter April 2017 to June 2017 and the imposition of a fee of Rs.11,000.

2. Maintainability of appeal against levy of fees under section 234E: The Commissioner of Income Tax (Appeals) held that the appeal against the levy of fees under section 234E was not maintainable as per Section 246A of the Act. However, the Appellate Tribunal disagreed with this interpretation. The Tribunal noted that the Appellant had filed an appeal against the intimation under section 200A of the Act, which was clearly permissible under Section 246A. Therefore, the Tribunal set aside the decision of the Commissioner and allowed the appeal to be decided afresh after providing an opportunity to the Assessee.

3. Interpretation of Section 246A: The Tribunal delved into the interpretation of Section 246A of the Income Tax Act, which lists appealable orders before the Commissioner (Appeals). The Tribunal emphasized that the Appellant had the right to file an appeal before the Commissioner (Appeals) against the intimation under section 200A of the Act, as explicitly mentioned in the Form-35. The Tribunal concluded that the Commissioner had erred in holding that the appeal was not maintainable and directed the issue to be reconsidered by the Commissioner after affording the Assessee an opportunity.

4. Final Decision: The Appellate Tribunal allowed all three appeals raised by the Assessee for statistical purposes, emphasizing the importance of the Assessee's right to appeal against certain orders as provided under the relevant sections of the Income Tax Act. The Tribunal's decision highlighted the need for a proper interpretation of the law to ensure justice and fairness in tax matters.

In conclusion, the judgment addressed the issues of appeal against levy of fees under section 234E, the maintainability of such appeals, and the interpretation of Section 246A regarding appealable orders before the Commissioner (Appeals). The detailed analysis provided clarity on the legal principles applied and the reasoning behind the Tribunal's decision to allow the appeals.